It might force people to extend their amortization period to 35 years.

Uninsured mortgages are the best kind, with 20% down it shows the buyer has some sort of saving ethics.

As for this slowing the market down, if I want to buy something for $700,000 and I have $140,000 in downpayment. Am I just going to walk away with my hands in my pocket because I don’t qualify? I would just lower my standards and buy something cheaper.

Its not like they are raising the minimum down from 5% to 10% which would prevent a certain group from buying anything period.

It might force people to extend their amortization period to 35 years.

Uninsured mortgages are the best kind, with 20% down it shows the buyer has some sort of saving ethics.

As for this slowing the market down, if I want to buy something for $700,000 and I have $140,000 in downpayment. Am I just going to walk away with my hands in my pocket because I don’t qualify? I would just lower my standards and buy something cheaper.

Its not like they are raising the minimum down from 5% to 10% which would prevent a certain group from buying anything period.

So wouldn't that slow down the market?
When I say market, I mean downward pressure on prices. Not necessarily less volume of sales.

When I say market, I mean downward pressure on prices. Not necessarily less volume of sales.”

Absolutely not, remember “it’s different here” and even if it isn’t different here, “it’s different this time”. And even if it isn’t different this time you must remember that real estate prices only go up!

... Insured mortgages in the two most expensive housing markets are dropping, Siddall said. In Toronto, insured loans comprised 16 percent of the market last year, compared to 27 percent in 2010 and in Vancouver, those figures are 12 percent and 20 percent.

In addition, indicators of risk are rising for low-ratio mortgages -- those where the buyer has staked at least 20 percent of the purchase price up front, Siddall said. Some 27 percent of borrowers who took out low-ratio mortgage in 2016 had a loan-to-income ratio higher than 450 percent, up from 19 percent in 2014, CMHC said."